Missed RMD but reported on correct 1040

Forum|Forum|1 year ago
February 9, 2025
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Hello. My husband was ill in 2023 and he missed withdrawing his RMD from two different IRA accounts. However, when I did the taxes in March 2024, I discovered that he didn't take his 2 RMDs. He called the 2 IRA custodians and they sent him his 2 RMD's in March 2024. Even though I did not have a 1099-R for either of these withdrawals, I still was able to report them on time on our 1040 for the tax year 2023.

(My husband died right after April 15th of 2024. )

The problem is that the 2 custodians just sent me a 1099 for the tax year 2024 for each of these RMD's which were already reported on the 2023 1040. We also filed form 5329 in March 2024 asking for a waiver of penalty due to his ill health. How do I explain to the IRS when doing the 2024 taxes that these 2 RMD's were already reported on the 2023 1040? I fear that the IRS will see the 2024 1099's I received in for these 2 RMDs and expect me to report them on the 2024 1040 even though I already reported them on the 2023 1040? Do I have to enclose a letter explaining this when I send in my 2024 1040 form?
I would appreciate someone's help. Thanks.

dmertz

Employee

Because the amounts were distributed in 2024, they were not to be reported as income on the 2023 tax return. You must amend the 2023 tax return to remove that income so that it will only be taxed on the 2024 tax return (as it should be). Because you already filed the 2023 Form 5329 requesting waiver of the excess-accumulation penalty, you won't need to include that in your amendment.

EA21440Author

I called the IRS and they advised me to report the missed RMD withdrawals (supposed to be withdrawn in 2023 and not withdrawn until 2024) right away on my 1040 2023 tax form even though the 2024 1099-R was not generated yet. This is not the advice you gave me. You are asking me to amend the 2023 tax form and remove any RMD amounts that were properly reported for the tax year 2023 and then put them on the 2024 1040 because the 2024 1099-R shows those amounts. I thought if I explain this in writing when I do my 2024 1040, the IRS will see that all income has been reported. I can explain in detail how a portion of the total RMD on the 2024 1099-R was reported on the 2023 1040 and a portion of that total was reported on the 2024 1040. Both RMD amounts total the RMD amount on the 2024 1099-R. Please advise.